CalPERS Buys Stake in Indiana Toll Road

In its first U.S. transportation investment, CalPERS has bought a 10 percent stake in the Indiana Toll Road Concession Company LLC, which operates the 157-mile Indiana Toll Road.

It bought the share from IFM Investors.

More from a release:

“This solid, long-term investment represents our first foray into a transportation asset in the United States,” said Paul Mouchakkaa, Managing Investment Director for CalPERS’ Real Assets program. “We continue to make progress building up this important program, and the ITRCC aligns well with our recently adopted strategic plan for real assets.”

The ITR spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago. ITRCC has the exclusive right to collect revenues from the toll road for the next 65 years. IFM Investors continues to hold more than 85 percent of ITRCC. Pricing and details of the purchase are not being released at this time.

The role of CalPERS’ Infrastructure program is to hold ownership of essential infrastructure assets that provide predictable returns with moderate long-term inflation protection. Infrastructure also acts as an economic diversifier to equity risk in the portfolio. With this purchase, the program makes up slightly more than one percent of the total fund, with a net asset value of approximately $3.1 billion.

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